CITIC Securities Expects U.S. Stocks to Stay Fundamentally Driven in the Second Half

CITIC Securities said U.S. equity market trading in the second half is expected to remain primarily driven by fundamentals. According to Jin10, the firm recommended focusing on four areas for sector allocation. First, it highlighted technology sectors where growth momentum remains strong and valuations are relatively reasonable. Second, it pointed to defense stocks, citing support from prolonged geopolitical risks and high certainty on the demand side. Third, it favored energy infrastructure, saying it benefits from continued strain on core energy supply for data centers. Fourth, it recommended financial sectors such as banks, citing dual drivers of capital returns and improving regulation.